The commercial activity of the United States cools even more, the generalized price does not increase

For Lucia Mutikani

Washington’s commercial activity (Reuters) –us slowed down for a second consecutive month in September, and although companies complained about tariffs that increased costs, the prices of their goods and services were not increasing, which is a good omen for inflation perspectives.

The Global S&P survey suggested on Tuesday that companies were absorbing most import tariffs and supported the argument of some economists that tariffs would not have a lasting impact on inflation.

The president of the Federal Reserve, Jerome Powell, said on Tuesday that a reasonable base case was that the tariffs would result in a unique increase in the price level, “extended in several quarters and appeared as a somewhat higher inflation during that period.”

The head of the US Central Bank. UU. He added that “the short -term risks for inflation are upset.”

Although inflation has been recovered in recent months, prices have not been shot as feared when President Donald Trump began to implement his tariffs. Consumers have become demanding and companies have been selling accumulated goods before imposing import tariffs.

“Producers are absorbing a substantial portion of tariffs,” said Samuel Tombs, chief economist of Pantheon Macroeconomics. “The S&P survey must reassure the Fed on inflation perspectives.”

S&P Global’s Flash US Composite PMI Output output, which tracks the manufacturing and services sectors, fell to 53.6 this month from 54.6 in August. A reading greater than 50 indicates expansion in the private sector.

The activity slowed in manufacturing, with the PMI flash in 52.0 from 53.0 last month. Flash PMI services reduced 53.9 from 54.5 in August.

Companies face higher supplies prices

The measure of the prices of the survey paid by the companies for inputs increased to 62.6 from 60.8 last month, pointing out that “the tariffs were overwhelmed overly cited as the main cause of higher increases in costs.”

But its price indicator charged by companies for goods and services fell to 56.0 from 58.3 in August, since “companies in manufacturing and services often reported difficulties in passing higher costs to customers due to weak demand and growing competition.”

“However, the survey data remains indicative of consumer inflation that remains above the 2% target of the Central Bank in the coming months,” said Chris Williamson, a business economist of S&P Global Market Intelligence.

The Fed resumed the reduction interest rates last week, reducing the reference interest rate of the Central Bank for 25 basic points to the range of 4.00% -4.25%, mainly in response to a weakening labor market.

The new orders received by the companies fell slightly this month, with most of the deceleration in the manufacture.

The export orders remained submitted while the employment was moderated. S&P Global said that “a greater incidence of unable companies or not willing to occupy vacancies”, adding “one more approach to job loss due to cost reduction” was evident in manufacturing.

Labor market conditions have softened, with non -agricultural payroll profits with an average of only 29,000 jobs per month in the three months to August compared to 82,000 during the same period last year.

(Lucia Mutikani report; Chizu Nomiyama and Andrea Ricci edition)